Friday, March 30, 2012

A TSA manager has been arrested by Maryland police for pimping a prostitution ring even after the TSA knew of potential problems in their background checks done in 2009. Bryant Livingston, a TSA manager at Dulles International airport in Washington DC, was caught by police at the Crowne Plaza Hotel with several girls and johns in a sting operation.

A manager at the Transportation Security Administration has lost his job after being arrested on prostitution-related charges. According to court documents, the agency had received a complaint of "very similar" activities back in 2009.

Bryant Jermaine Livingston, 39, was arrested while on the job as a supervisor of TSA agents at Dulles International Airport. The Manassas, Virginia resident, said by phone he is innocent of the charges, but declined to discuss the details of the case.

A spokesman for the Transportation Security Administration confirmed that Livingston had worked for the agency since Oct. 29, 2002, but he is now "no longer employed by TSA."

In a subsequent interview, one of the men in the room told Montgomery County police that, "he paid Livingston $100 to enter the hotel room to engage in sexual activities." Charging documents also say a TSA investigator told police that, "in 2009, a very similar complaint concerning Livingston was on record. The complaint alleged that Livingston was operating a prostitution ring and charging individuals $25. for sexual acts."

The TSA spokesman had no immediate explanation as to what, if anything, the agency did about the earlier complaint. - myfoxdc.com

With the intrusive processes that the TSA performs on America citizens in direct violation of their personal bodies and privacy, it is very disturbing that a government agency would allow a potential sex crime offender to continue to work in a close proximity position to adults and children in a busy international airport.

With the government in full debt mode by its borrowing close to $150 billion a month just to cover current obligations, the Federal Reserve has been forced to go full bore in buying that debt, and monetizing government spending.

Last year the Fed purchased a stunning 61% of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis.

This not only creates the false impression of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits.

What about Japan and China? Aren’t they the major purchasers of U.S. debt? Not any more, notes Goodman. Foreign purchases of U.S. debt dropped to less than 2 percentof GDP (Gross Domestic Product) from almost 6 percent just three years ago. And private sector investors — banks, money market and bond mutual funds, individuals and corporations — have cut their buying way back as well, to less than 1 percent of GDP, down from 6 percent. This serves to hide the fact that the government can’t find outside buyers willing to accept rates of return that are below the inflation rate (“negative interest”) given the precarious financial condition of the government. - New American

Congress last year did not have the stomach to halt raising the debt ceiling, and it appears that they will not keep the debt from crossing $16 trillion by the time of the election. As foreign entities such as China and Japan deal with their own economic downturns, and Europe is requiring bailouts not buyouts just to survive, the Fed will have no choice but to keep monetizing US debt to stave off collapse and default by the world's largest creditor nation.

On March 30th, the nation of Canada made a decision to eliminate the penny from its monetary system and use a rounding up method for purchases and transactions. The decision was based on the rising cost of metals which are used to mint the 1 cent denomination, and no longer will it cost 1.5 cents just to create 1 cent.

Canada will withdraw the penny from circulation this year, saving taxpayers about C$11 million ($11 million) annually and forcing retailers to round prices to the nearest nickel, the government announced in its budget today.

The Royal Canadian Mint, which has produced 35 billion pennies since it began production in 1908, will cease distribution this fall due to the coin’s low purchasing power. Production and handling cost for the one-cent coin are a C$150- million drag on the economy, according to a 2006 study by Desjardins, a Levis, Quebec-based financial institution. - Bloomberg

When I was a military brat overseas in Spain in the early 1980's, the USAF was doing this form of monetary policy, and rounding up transactions to the nearest nickel. With inflation devaluing the dollar denominations fast and furious, it may be time to make that policy complete and join Canada in tossing the penny from the economy.

Wednesday, March 28, 2012

Professor Antony Davies of Duquesne University has put together a factual and yet satircal piece of economic data on how our bankrupt government, which borrows more than $150 billion per month, can afford to fund itself for the rest of 2012.

Now that the Western economies have gone completely into Keynsian money printing, there is no stopping the amount of debt nation will accrue to keep the current market systems going. And as with inflation, at a certain point the curve goes exponential where it will require more and more money just to stay even with today's borrowing.

A new chart projection of several Western economies shows that nearly every one will move into the exponential rise in debt obligations around the same time, with the trigger point occurring around 2015.

Monday, March 26, 2012

The global attack on the dollar is underway, and this last weekend, several BRICs nations fired off their latest salvo in moving away from the world's global currency.

South Africa will this week take some initial steps to unseat the US dollar as the preferred worldwide currency for trade and investment in emerging economies.

Thus, the nation is expected to become party to endorsing the Chinese currency, the renminbi, as the currency of trade in emerging markets.

This means getting a renminbi-denominated bank account, in addition to a dollar account, could be an advantage for African businesses that seek to do business in the emerging markets.

The move is set to challenge the supremacy of the US dollar. This, experts say, is the latest salvo in the greatest worldwide currency war since the 1930s. - Citypress.co.za

China, Iran, and even Saudi Arabia have all been creating trade agreements within the past year that accomplish trade without the use of the dollar in goods and services exchanges. China recently completed a refinery contract with Saudi Arabia, as well as a trade agreement with Japan. Iran is allowing its oil to be sold in exchange for gold, and is moving away from the dollar in international capacities.

The days of the dollar appear to be limited, as the 'full confidence' of the US currency wanes in the eyes of foreign countries. This leaves the one true currency recognized around the world, and for many Americans, if you don't have, or aren't buying gold now, you may soon become the new 1%ers to the future global currency.

Christian tithes and donations in America is a billion dollars business. Churches, ministries, and especially televangelists feel that it requires vast sums of money to to what they call, 'spreading the Gospel'.

Unfortunately, these men and institutions forget that spreading the Gospel was a form of network marketing, not corporatism, and in the bible Jesus only needed 12 men with just the robes on their backs to do what millions today require billions of dollars to accomplish.

However, just because a man (or woman) has an ecclesiastical title in front of their names, does not mean they are doing the true work of God, nor are they producing the fruit that Jesus said would come when people accomplished things in His name. In a new story out on the fraud and corruption of the American church system, millions of dollars donated by well-minded Christians are going to fund extravagent lifestyles for the select 1%ers, and little is done to actually preach the true Word of God in exchange.

Two former employees of the world's largest Christian television channel Trinity Broadcasting Network are accusing the non-profit of spending $50 million of its funding on extravagant personal expenses.

Among purchases, the network founded by Televangelists the network founded by Televangelists Paul and Jan Crouch, is accused of misappropriating its 'charitable assets' toward a $50 million jet, 13 mansions and a $100,000-mobile home for Mrs Crouch's dogs. - Daily Mail

All of this should not be surprising to those who do a little research, since its common knowledge that the Vatican is one of the wealthiest institutons in the world, along with the Mormon church, which has a $50 billion industry of its own.

In the bible, tithes were supposed to be paid to the priests and the temple for the work they do for God, but in the New Testament, each individual beleiver IS the High Priest, and their bodies are the temple for it contains the Spirit of God. Thus the choice becomes... stop giving to corporations who use the name of God to enrich themselves and start giving individually to fellow Christians who need assistance, for you will be following the EXACT will of Christ and the New Covenant.

Friday, March 23, 2012

There is a new bill in Congress that is expected to pass that would allow the government to suspend your travel outside the country if you own taxes to the IRS.

Senate Bill 1813 (Highway trust fund), which was passed by the Senate last week and is now pending in the House of Representatives contains a provision that would allow the IRS to order the State Department to refuse to grant, refuse to renew, revoke or restrict the passport of any US citizen which the IRS certifies owes the IRS $50,000 or more in unpaid taxes. There is no requirement that the tax payer be guilty of or even charged with tax evasion, fraud, or any criminal offense - only that the citizen is alleged to owe the IRS back taxes of $50,000 or more.

With Capital Control measures expected to be implemented in 2013, which would force Americans to keep their money from going offshore, the laws being legislated are now affecting the average citizen far more than any action against terrorists, or in support of the 'War on Terror'.

On March 22nd, the End of the American Dream blog came out with 10 indicators that cities around the country could begin defaulting in greater numbers as both the pension funds and municipal bonds outstanding could be on the verge of a collapse.

Chart courtesy of the Wall Street Journal

#1 Moody's has downgraded Detroit's debt again.

#2 The city of Indianapolis is facing an unprecedented 75 million dollar budget deficit in 2012. City officials are warning that there may soon not be enough money to keep the streetlights on.

#3 Suffolk County in New York has declared a "fiscal emergency" after discovering that it is projected to take on a total of more than 500 million dollars of additional debt by the end of 2013.

#4 The city of Trenton, New Jersey is so broke that it has put off buying more toilet paper for city buildings. At last report, there were a total of 15 rolls remaining and after that those that use city restrooms will be on their own.

#5 Some cities are slashing expenses dramatically in an attempt to stay afloat.

#6 In New York, state officials are deeply concerned that city and local governments are paying their pension obligations by borrowing from the state pension fund. This is essentially like making your minimum monthly payment on a credit card by borrowing more money on that same credit card....

#7 Pension problems are catching up with a lot of cities all over the nation. For example, CBS News reported recently that the city of Central Falls, Rh0de Island has been forced to declare bankruptcy because of pension woes....

#8 Last November, Jefferson County, Alabama filed for the largest municipal bankruptcy in U.S. history. At the time, they had accumulated a total of approximately 4.2 billion dollars of debt.

#9 Several other U.S. large cities have defaulted on their debts in early 2012

#10 In all, there have been 21 municipal defaults so far in 2012. The grand total of those defaults comes to 978 million dollars.

On top this these indicators listed, interest rates appear ready to move up outside the Fed's influence to control the lending rates. Rates crossed 4% for the first time in several months in March, and the rate of foreclosures is now increasing after legal and legislative changes were made to the contract ownership barriers between banks and homeowners.

Lower tax receipts, coupled with rising inflation and the inability of cities to borrow money through bond auctions will accelaerate the collapse of many municipalities, and lead to greater unrest as city pension funds continue to shrink for retirees.

Thursday, March 22, 2012

For years, silver traders such as Erik King of KingWorld and Eric Sprott out of Canada have been preaching to the masses on silver manipulation done by banks such as JP Morgan to assist the Fed in propping up a dead fiat currency (dollar). Their pleas have mostly fallen on deaf ears, except to those who hold a large stake in silver, and silver prices.

That changed on March 20th when undeniable evidence emerged from NANEX of the banking cartels using high speed computer algorithms to force the price of silver down at the speed of light. So much, so fast, that it was pumping out 75000 down trades a second.

Courtesy of Nanex we now have direct evidence of just what the reflexive market (in which derivative products such as ETFs influence underlying assets) goes to town by taking silver to the woodshed at a whopping 75,000 times per second! From the broken market sleuths at Nanex: "On March 20, 2012 at 13:22:33, the quote rate in the ETF symbol SLV sustained a rate exceeding 75,000/sec (75/ms) for 25 milliseconds. Nasdaq quotes lagged other exchanges by about 50 milliseconds. Nasdaq quotes even lagged their own trades -- a condition we have jokingly referred to as fantaseconds." Translation: so desperate was the desire to crush silver at precisely 13:22;33, that the Nasdaq order flow directive ended up moving faster than light. - Zerohedge

President Obama has been very quick to use the recent BLS reports on new jobs and unemployment claims to justify his economic initiatives are working, and creating jobs for Americans. But when you dig just below the thin veneer of manipulated data models, you will find a new and disturbing trend.

A large portion of new job hires are for temporary positions at lower wages and without benefits.

…the rising jobs are purely a quantity over quality trade off, as every month more and more temp jobs take the place of permanent ones, especially those of former professionals from the FIRE sector. In fact, in January temp jobs soared by the most on record, and the total number of temp workers was just shy of all time highs. Ironically, as this happened, discretionary online retail companies have seen their stock price soar to record highs. One of the primary drivers for this has been the increased "efficiency" at these companies' hubs - their warehouses. Which just happen to be staffed with temp workers. - Zerohedge

The Warehouse is the new means of running am internet based business at the detriment of a Main Street brick and mortar complex. Companies like Amazon and CompUSA run completely out of the internet, and vast warehouses that are filled with temporary employees working 32 or less hours.

This allows them to undercut their competition through labor costs and limited benefit programs, but not unlike the 'Sweatshop' models of China and other Asian producers.

This infograph by Business Insurance.org shows just how the 21st century sweatshop in America works, and why it has grown because of the failed job policies of the second half of GW Bush, and the entire term of Barack Obama.

The one thing that is almost always confirmed when the banking cartels take over a nation by military, political, or economic means is that shortly after, the nation's physical gold reserves will be plundered and moved to secret locations outside the hands of the citizens who own it.

We saw this occur in Libya after the revolution that took place last year, and more recently in Greece, where the Troika forced a central banker (Papademos) onto the people, and quickly instituted a takeover of their gold holdings.

Now it appears that Turkey may be joining the gold takeaway movement as government officials are asking their citizens to trade their physical gold in for worthless fiat currencies so the psuedo-EU nation can use it as collateral to the central banks to pay off growing debt obligations.

The WSJ reports that "The Turkish government, facing a bloated current-account deficit that threatens to derail the country's rapid expansion, is trying to persuade Turks to transfer their vast personal holdings of gold into the country's banking system." The reason: "The push to tap into the individual gold reserves—the traditional form of savings here—is part of Ankara's efforts to reduce a finance gap that is currently about 10% of gross domestic product." In other words, "sequester" the population's hard assets (politely of course), and convert these to paper to fund the country's creditors, both foreign and domestic. Mostly foreign. - Zerohedge

For a system that continues to tell the world that gold is a 'barbarous relic', they sure are doing their utmost to rid nations of their yellow metal for their own benefit and accumulation.

Tuesday, March 20, 2012

In a previous post, the Daily Economist showed you how for every .10 cent increase in gas prices, Americans lose $25 billion in discretionary income. Well, as of March 20th, we can chalk up $50 billion that will now be siphoned from desired us by the common American into gasoline purchases because the average price has risen .15 to $4.00 a gallon.

The Republican party should know that any attempt to submit a budget before the Senate and the President will come to naught, but perhaps gaining a little political capital from voters may be the reason. On March 20th, a Republican coalition led by Paul Ryan forged a budget which cuts taxes for both individuals and corporate bodies, and removes several 'tiers' as well as the dreaded AMT.

While it has no chance of passage, the GOP 2013 budget, details of which have been leaked by the WSJ, proposes slashing corporate and individual tax rates, collapsing the current six tax bracket system into just two tiers (10% and 25%), lowering top corporate tax rate to 25% and scrapping the anachronism that is the AMT, or Alternative Minimum Tax. Finally, the proposed plan would nearly eliminate U.S. taxes on American corporations' earnings from overseas operations: something which companies with foreign cash would be rather happy to hear. - Zerohedge

While the jealousy class, otherwise known as the 1% of the 99%ers will not be thrilled with corporations receiving tax breaks, the rest of America should take a second look and realize the potential of what this means. Because of the draconian tax system, companies have been shipping jobs, money, and infrastructure offshore for more than a decade, causing 8 million jobs to be lost in industrial and manufacturing sectors. If companies were given cause to bring back the TRILLIONS of dollars they keep out of the American economy, then you would have an automatic force majeure in the financial system, and it, more than Obama's trillion dollar failed 'shovel ready' job program, would help bring the US out of recession, and start putting Americans back to work.

And with the removal of the tier system of taxation, maybe put some IRS agents OUT of work.

For all intensive purposes, the IMF is the United States taxpayer. America provides 17% of the funding to the global bank, and almost 3 times the amount as the second biggest contributor (Japan). So in every sense of the word, when politicians or the media refer to the IMF, they are really talking about the US and US taxpayer.

With this being determined, it should be no surprise to the American people that the Greek settlement and Greek bailout would be thrust onto the US and our tax dollars... similar to how our tax dollars were used by the FED to bailout European banks in both 2008 and again this year under dollar swap programs.

"Greece has received the first 7.5 billion euros of aid from its new EU/IMF bailout, with the bulk of the payment going to repay bonds held by the euro zone's central banks, government officials said on Tuesday." So while the Greek may particularly care that not only will they not see much if any of the actual bailout cash, and in fact will soon have to start using their gold to fill the capital shortfall as reported here, we are curious what the response will be from US taxpayers, who are on the hook for about 17% of IMF funding, as the money starts trickling in, however not for some old-fashioned concepts such as stimulating jobs, but simply to indirectly, with Greece as a conduit, bailout Europe's insolvent central banks. - Zerohedge

As costs for college and university eduction has skyrocketed over the past decade, student loan eligibility has gotten easier for young adults. The paradigm Americans have over borrowing for today without considering tomorrow's future is leaving the next generation with debts that will affect their choices for decades to come.

So with this being said, and the statistical no-win scenario of further education, coupled with dwindling job opportunities and falling wages, the old model of needing a college Degree to have a good lifestyle is dying in society as the cost of eduction itself, not the lack of opportunities, is what is killing the future of the next generations.

A recent infograph study by Online College News shows exactly how the unsustainable cost of higher education is no longer a viable solution to ensuring a good future in a career, or lifestyle.

Monday, March 19, 2012

Highly respected UBS economic analyst Art Cashin did a critique of the recent BLS reports coming out of the government regarding jobs and unemployment. His focus was on the massive 'seasonally adjusted' tools that are used to estimate data that isn't confirmed, and with so much of the latest reports showing job growth that isn't actually there, Cashin assesses that the reports no longer carry much weight as an economic indicator.

Most economic data is seasonally adjusted. This is a good thing because there are seasonal patterns during the course of the year. But the sheer size of the recession we went through had an unintended impact on the way those algorithms run. When the economy fell off a cliff in the Great Recession it was like no other recession we have experienced, so it wasn’t easily compared. The systems received data in Q4 and Q1 expecting it to be particularly weak on a seasonal basis. Therefore, they adjusted upwards and that was not intended. There is an easy, un-confusing, fifth-graders-can-do-it, way around this, which is to look at the year-over-year growth rate which shows something quite ominous. When we look at our forward-looking indicators both sets surged initially coming out of the recession. Then they rolled over. They popped up briefly again about a year ago and now they have turned down again. The Weekly Leading Indicator is now at its worst readings since July 2009. These leading indicators have hardly been swayed from their recessionary trajectory. So it brings the bigger question, can unprecedented global monetary policy repeal the business cycle? And these pictures say no. - Zerohedge

With the US and international banking cartels doing their best to squeeze Iran under economic sanctions, China, which relies heavily on Iranian oil, gave the global superpower the proverbial middle finger as Chinese tanker officials told the press that nothing will stand in their way of shipping oil from the Middle Eastern nation to their country.

China, the biggest buyer of Iranian oil, will take steps to prevent European trade sanctions disrupting shipments from the Persian Gulf nation, said tanker operator China Shipping Development Co.

The government has discussed ways of helping shipping companies get insurance once sanctions against Iran kick in on July 1, General Manager Yan Zhichong told reporters in Hong Kong today. The ministry of transport and National Development Reform Commission has had special meetings on the issue, he said.

"The attitude is clear - we must make sure that the volume of our shipments will not drop," Yan said. "The government regards it as a very important issue." – Poor Richards Blog

With Russia already saying they will oppose the US and Israel on any strikes sent at Iran, and now China blatently crossing the line on imposed economic sanctions, the world sits on a powder keg like 1963 and the Cuban Missile Crisis... and this time, it may be the US that blinks.

After weeks of shareholders crying for Apple to disconnect themselves from the autocratic policies of former CEO Steve Jobs, the board of the largest retail company in the world (at least on the S&P 500) has decided to spend some of their $98 billion in cash, and offer dividends and share buybacks for investors.

Apple Announces Plans to Initiate Dividend and Share Repurchase Program

Expects to Spend $45 Billion Over Three Years

Business Wire

CUPERTINO, Calif. -- March 19, 2012

Apple today announced plans to initiate a dividend and share repurchase program commencing later this year.

Subject to declaration by the Board of Directors, the Company plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012.

Additionally, the Company’s Board of Directors has authorized a $10 billion share repurchase program commencing in the Company’s fiscal 2013, which begins on September 30, 2012. The repurchase program is expected to be executed over three years, with the primary objective of neutralizing the impact of dilution from future employee equity grants and employee stock purchase programs.

The total cost for Apple in doing this will be around $45 billion over the next three years, which will not even equate to half of their current cash holdings. Since Apple in the past has not given dividends to loyal shareholders under the rule of Steve Jobs, these actions may be the final disconnect of a paranoid man who willed consumers to do things his way, or the highway.

A shocking thought? Hardly. Especially in lieu of news yesterday out of Lake County, Florida where a Democratic HQ office displayed a new flag up their flagpole with an image of Barack Obama replacing the stars representing the 50 states.

My fellow Americans... if you don't beleive our narcissist in Chief truely does seek to remove the sovereignty of the 50 states, and create a new nation in his image, then you can think the American education system which has succeeded in indoctrinating you to the New Order.

You have to love a politician and banker who tells it like it is, and especially in the face of the banking cartels while they are forced to sit and listen to the rant. Such are the ways of Britain's representative to the EU Nigel Farage, and today's blasting of the ECB's fake bailout of Greece is another classic in the annals of exposing the fraudsters.

The umbrella over the nations monetary system has finally decided to enter into the realm of social media. Today, the Federal Reserve started a twitter account, and with 140 characters to post with, it allows new QE policies to print with up to 140 zero's, or:

QE140

For immediate release

The Federal Reserve Board on Wednesday launched its official Twitter channel--@federalreserve Leaving the Board--with the aim of increasing the accessibility and availability of Federal Reserve Board news.

The Board’s website, www.federalreserve.gov, will remain its primary channel of communication. Selected announcements will be tweeted after they are first posted on the website.

To start, tweets will include items such as press releases, speeches, testimony, reports to the Congress, the Monthly Report on Credit and Liquidity Programs and the Balance Sheet, and the Federal Reserve’s weekly balance sheet (H.4.1). Additionally, the Board will tweet about educational frequently asked questions (FAQs) and Board video links.

Thursday, March 8, 2012

It is easy to make statistics dance to whatever tune you desire when you control the data and how it is presented. Ie... the fall in the unemployment rate to 8.3% when you fail to include all the people who are actually out of work.

But what cannot be manipulated is how many Americans apply for unemployment benefits, and for the third consecutive week, that number has beaten analyst expectations, and is the longest contiuous stretch since last year.

Initial claims printed +362K, missing consensus of +352K, and up from a upward revised, (of course) 354K. As a reminder, last week's print was expected to be 355K, instead coming at 351K spiking the market far higher. Needless to say, the response would have been far more muted had the number come at its true final print of virtually on top of expectations, but who cares anymore - everyone appears to enjoy lying and being lied to. That this miss comes ahead of a critical NFP print will likely have some scratching their heads especially since this is the first time we have seen three consecutive weeks of rises since August 2010. - Zerohedge

As a former Soviet dictator once said, it is not about who gets to vote, but who gets to COUNT the votes that matters. So too is the ability of government agencies to obscure the unemployment through false reports, even when they contridict the ones they cannot manipulate.

Wednesday, March 7, 2012

Last week, Federal Reserve Chairman Ben Bernanke said he did not see the need at this time to continue any real form of quantitative easing, as inflation was signalling a sharp rise in prices. The markets reacted accordingly, and dumped both equities and commodities, and the dollar quickly gained strength across the board.

However, a Keynesian is a Keynsian no matter how much they try to stick to a 12-step program, and just as quickly as the central banker said no to QE infinity, a spokesperson for the institution came out today and said that QE could still be in play, only in a more steralized form.

Steralized form? Should we now refer to Ben Bernanke as Dr. Evil, MD?

While we have yet to see the actual report, almost certainly emanating from Jon Hilsenrath, it appears that the QE3 rumormill has started, initially with speculation that the Fed's activity will be merely "sterilized" or more Twist-type purchases, unclear however if in TSYs or also in MBS. Via the WSJ:

Of course, the markets reacted postitvely to the thought of more booze to keep the party going, and any economist with half a brain can see that Dow 13000... heck DOW 10000+ has simply been tied to trillions pumped into the monetary system by the Bernank bartender.

If the markets cannot stand on their own for even a WEEK without Fed stimulus, then the hopium dream that America is in recovery is better left to those ignorant fools who desire the Blue Pill.

Monday, March 5, 2012

If you've ever wanted to know how the credit crisis came about, and how the Fed, banks, and even government officials all participated in one of the great thefts of wealth in the history of the world, simply take a look at this 10 minute breakdown of how the scheme was perpetrated, and implemented to increase the money supply, use it to enrich the upper 1%, and then use $trillions in taxpayer money to bailout the system once that wealth was removed.

In the world of the haves and have-nots, economic analysis can always find new ways to distinguish the direction a populace is taking on the high and low side. A most interesting comparison seems to have taken place on March 2nd where the wealthiest corporation in the world, Apple, reached another new high in stock price, while at the same time, Food Stamp recipients in American also touched new records.

Think Apple is the only thing allowed to hit new records every month? Think again: presenting iFoodstamps - the number of Americans living in poverty (or at least doing a damn good job of fooling the government in pretending they do). As of December, per SNAP this number just hit another record high of 46.5 million, an increase of 384,000 in one month (and ending the trend of declines from October and November), 2.4 million in 2011 (about as many as have dropped out of the Labor force, hmmmm), and 14.3 million since Obama took office. - Zerohedge

And as Zerohedge points out in ultimate Irony, you can download instruction at iTunes on how to apply and receive food stamps and other benefits.

Thursday, March 1, 2012

On March 1st, Energy Secretary Stephen Chu uttered what most Americans believed, which is that President Obama has no thoughts on resolving high gas prices because to do so would interfere with his green agenda.

According to Politico, Chu admitted to a House committee that the administration is not interested in lowering gas prices.

Chu, along with the Obama administration, regards the spike in gas prices as a feature rather than a bug. High gas prices provide an incentive for alternate energy technology, a priority for the White House, and a decrease in reliance on oil for energy. – Yahoo News

Besides the Obama Administration, many Democrats have the same lack of compassion for Americans who are watching their disposable income shrink with each dime hike in prices. Nancy Pelosi fell back on to the old rhetorical blame speculators instead of recognizing the growing inflation taking place due to Congressional, Executive, and Fed spending.

The American people speak loudest when markets or government try to dip into thier pocketbooks, and the President unwillingness or inability to deal with soaring gas prices will change many voters minds in the coming November elections.

Given that oil and gasoline prices will further cut into consumer spending, which makes up nearly 70% of America's GDP numbers, the death rattle for the economy has begun, and it is RIP for the world's one time greatest GDP.